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Mohegan Tribal Gaming Authority Announces Second Quarter Fiscal 2016 Operating Results

28/04/2016 05:30

Source: PR News

Category: Tourismembassy News

UNCASVILLE, Conn., April 28, 2016 /PRNewswire/ -- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of Mohegan Sun in Uncasville, Connecticut, and Mohegan Sun Pocono in Wilkes-Barre, Pennsylvania, announced today the operating results for its second fiscal quarter ended March 31, 2016.

"We are pleased to report another very strong quarter of operating performance, evidenced by our 3rd consecutive quarter of top line growth coupled with very strong flow-through to the bottom line," said Robert J. Soper, President and Chief Executive Officer of the Authority. "In addition, the March quarter was a very exciting one with respect to our strategic goal of diversification with the sole conditional gaming license in South Korea being awarded to our Inspire joint venture, substantial progress on both the development of the Cowlitz casino in the State of Washington and the Earth Hotel in Connecticut and more recently, our agreement to assist the Tunica-Biloxi Tribe of Louisiana manage its flagship property, Paragon Casino Resort. With these endeavors in place, our high quality portfolio of assets will grow from three properties to six properties under management over the next several years."

Consolidated operating results for the second quarter ended March 31, 2016 (unaudited):

  • Net revenues of $331.8 million, a 6.9% increase over the second quarter of fiscal 2015
  • Gaming revenues of $296.7 million, a 7.9% increase over the second quarter of fiscal 2015
  • Gross slot revenues of $203.0 million, an 8.2% increase over the second quarter of fiscal 2015
  • Table game revenues of $93.4 million, a 7.4% increase over the second quarter of fiscal 2015
  • Non-gaming revenues of $57.5 million, relatively flat compared to the second quarter of fiscal 2015
  • Adjusted EBITDA, a non-GAAP measure described below, of $88.3 million, an 18.2% increase over the second quarter of fiscal 2015
  • Adjusted EBITDA margin of 26.6%, a 250 basis point increase over the second quarter of fiscal 2015
  • Income from operations of $60.3 million, a 23.0% increase over the second quarter of fiscal 2015
  • Net income attributable to the Authority of $30.5 million, a 102.8% increase over the second quarter of fiscal 2015

The growth in Adjusted EBITDA, income from operations and net income attributable to the Authority primarily resulted from higher gaming revenues driven by strong volumes at Mohegan Sun and Mohegan Sun Pocono, combined with increased revenues generated by Corporate.

Mohegan Sun

Operating results (in thousands, unaudited): 

 

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance






Adjusted EBITDA

$                 77,837

$           68,686

$          9,151

13.3%

Income from operations

$                 61,677

$           46,598

$        15,079

32.4%

Operating costs and expenses

$               194,509

$         193,687

$             822

0.4%

Net revenues

$               256,186

$         240,285

$        15,901

6.6%

Gaming revenues

$               228,119

$         210,035

$        18,084

8.6%

Non-gaming revenues

$                 45,047

$           47,516

$        (2,469)

(5.2%)

 

The growth in Adjusted EBITDA and income from operations primarily resulted from increased slot and table game revenues driven by higher volumes. Table game revenues also benefited from higher year-over-year hold percentage. These results were partially offset by increased promotional expenses related to our high-end table game segment. The decline in non-gaming revenues primarily reflected lower entertainment revenues resulting from a reduction in the number of shows held at the Mohegan Sun Arena, including fewer headliner shows. Adjusted EBITDA margin increased 180 basis points to 30.4% for the quarter ended March 31, 2016 from 28.6% in the second quarter of fiscal 2015.

Selected gaming data (in thousands, except where noted, unaudited):

  

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance






Slots:






  Handle

$            1,812,771

$        1,657,098

$        155,673

9.4%

  Gross revenues

$               147,399

$           137,310

$          10,089

7.3%

  Net revenues

$               141,524

$           131,965

$            9,559

7.2%

  Free promotional slot plays (1)

$                 15,288

$             13,471

$            1,817

13.5%

  Weighted average number of machines (in units)

5,140

5,335

(195)

(3.7%)

  Hold percentage (gross)

8.1%

8.3%

(0.2%)

(2.4%)

  Win per unit per day (gross) (in dollars)

$                      315

$                  286

$                 29

10.1%






Table games:






  Drop

$               458,913

$           426,011

$          32,902

7.7%

  Revenues

$                 83,020

$             74,591

$            8,429

11.3%

  Weighted average number of games (in units)

273

283

(10)

(3.5%)

  Hold percentage (2)

18.1%

17.5%

0.6%

3.4%

  Win per unit per day (in dollars)

$                   3,338

$               2,927

$               411

14.0%






Poker:






  Revenues

$                   2,668

$               2,522

$               146

5.8%

  Weighted average number of tables (in units)

42

42

-

-

  Revenue per unit per day (in dollars)

$                      698

$                  667

$                 31

4.6%

___________________________________________






(1) Free promotional slot plays are included in slot handle, but not reflected in slot revenues.





(2) Table game hold percentage is relatively predictable over longer periods of time, but can significantly fluctuate over shorter periods.



 

Non-gaming data (in thousands, except where noted, unaudited):

  

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance






Food and beverage:






  Revenues

$                 14,121

$           14,596

$          (475)

(3.3%)

  Meals served

631

676

(45)

(6.7%)

  Average price per meal served (in dollars)

$                   16.31

$             16.05

$            0.26

1.6%






Hotel:






  Revenues

$                 10,692

$           10,930

$           (238)

(2.2%)

  Rooms occupied

106

103

3

2.9%

  Occupancy rate

98.6%

97.7%

0.9%

0.9%

  Average daily room rate (in dollars)

$                        95

$                  99

$               (4)

(4.0%)

  Revenue per available room (in dollars)

$                        94

$                  97

$               (3)

(3.1%)






Retail, entertainment and other:






  Revenues

$                 20,234

$           21,990

$        (1,756)

(8.0%)

  Arena events (in events)

24

28

(4)

(14.3%)

  Arena tickets

136

155

(19)

(12.3%)

  Average price per Arena ticket (in dollars)

$                   37.31

$             44.54

$          (7.23)

(16.2%)

 

Mohegan Sun Pocono

Operating results (in thousands, unaudited):

 

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance






Adjusted EBITDA

$                 13,696

$           13,166

$             530

4.0%

Income from operations

$                 10,732

$           10,102

$             630

6.2%

Operating costs and expenses

$                 62,954

$           60,026

$          2,928

4.9%

Net revenues

$                 73,686

$           70,128

$          3,558

5.1%

Gaming revenues

$                 68,566

$           64,981

$          3,585

5.5%

Non-gaming revenues

$                 10,553

$             9,954

$             599

6.0%

 

The increases in Adjusted EBITDA and income from operations resulted from higher slot revenues which benefited from increased volumes. These results were partially offset by lower table game revenues primarily driven by lower year-over-year hold percentage. Adjusted EBITDA margin decreased slightly to 18.6% for the quarter ended March 31, 2016 from 18.8% in the second quarter of fiscal 2015.

 

Selected gaming data (in thousands, except where noted, unaudited):   

 

For the Three Months Ended 


March 31,

March 31,


Percentage

2016

2015

Variance

 Variance






Slots:






  Handle

$               686,530

$            612,711

$        73,819

12.0%

  Gross revenues

$                 55,560

$              50,331

$          5,229

10.4%

  Net revenues

$                 55,472

$              50,172

$          5,300

10.6%

  Free promotional slot plays (1)

$                 11,159

$              11,037

$             122

1.1%

  Weighted average number of machines (in units)

2,331

2,332

(1)

(0.0%)

  Hold percentage (gross)

8.1%

8.2%

(0.1%)

(1.2%)

  Win per unit per day (gross) (in dollars)

$                      262

$                   239

$               23

9.6%






Table games:






  Drop

$                 54,137

$              56,572

$        (2,435)

(4.3%)

  Revenues

$                 10,399

$              12,353

$        (1,954)

(15.8%)

  Weighted average number of games (in units)

73

73

-

-

  Hold percentage (2)

19.2%

21.8%

(2.6%)

(11.9%)

  Win per unit per day (in dollars)

$                   1,565

$                1,880

(315)

(16.8%)






Poker:






  Revenues

$                      846

$                   827

$               19

2.3%

  Weighted average number of tables (in units)

18

18

-

-

  Revenue per unit per day (in dollars)

$                      516

$                   511

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